DoD's $34M Novonics Contract for Integrated Training Systems Engineering Support Awarded via Full and Open Competition
Contract Overview
Contract Amount: $33,974,298 ($34.0M)
Contractor: Novonics Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-03
End Date: 2015-11-30
Contract Duration: 2,037 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: INTEGRATED TRAINING SYSTEMS ENGINEERING SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003
Plain-Language Summary
Department of Defense obligated $34.0 million to NOVONICS CORPORATION for work described as: INTEGRATED TRAINING SYSTEMS ENGINEERING SUPPORT Key points: 1. Contract awarded to Novonics Corporation for $33.97M. 2. Full and open competition was utilized. 3. The contract spans over 5 years, indicating a long-term need. 4. Engineering services sector, specifically for training systems. 5. Potential for cost overruns exists with Cost Plus Fixed Fee contracts.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the CPFF structure means the final price is not fixed upfront, potentially impacting the ultimate cost-effectiveness.
Taxpayer Impact: Taxpayer funds are utilized for engineering support services. The CPFF structure necessitates careful oversight to ensure costs remain reasonable and aligned with the fixed fee.
Public Impact
Supports critical training systems for the Department of Defense. Ensures continued development and maintenance of complex engineering solutions. Impacts readiness and operational effectiveness of military personnel. Long-term contract may indicate stable demand for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risks cost escalation.
- Lack of detailed cost data for benchmarking.
- Long duration could lead to scope creep.
Positive Signals
- Full and open competition ensures broad market access.
- Supports critical defense training infrastructure.
- Established contract duration provides predictability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex training systems for the Department of Defense. Spending in this area is crucial for maintaining military readiness and technological advantage.
Small Business Impact
The contract was awarded via full and open competition, and there is no indication of small business participation. This suggests larger, established firms were likely the primary bidders.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of Defense to manage costs and ensure the fixed fee remains appropriate throughout the contract's life. Regular performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for cost escalation without strict oversight.
- Limited transparency on specific cost components.
- Long contract duration may not adapt to evolving technology.
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to NOVONICS CORPORATION. INTEGRATED TRAINING SYSTEMS ENGINEERING SUPPORT
Who is the contractor on this award?
The obligated recipient is NOVONICS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $34.0 million.
What is the period of performance?
Start: 2010-05-03. End: 2015-11-30.
What specific engineering services are included under this contract, and how do they directly contribute to training system effectiveness?
The contract covers engineering support for integrated training systems. This likely includes design, development, integration, testing, and sustainment of complex simulation and training platforms. The effectiveness is measured by how well these systems prepare military personnel for real-world scenarios, improving skill acquisition and operational readiness.
Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
The Department of Defense must implement robust oversight, including regular audits of costs incurred and justification for the fixed fee. Clear performance metrics and milestones tied to payments are crucial. Any deviations from the baseline plan should be rigorously scrutinized and approved.
How does this contract's duration and value compare to similar engineering support contracts within the DoD for training systems?
A five-year duration and $34 million value are substantial for specialized engineering support. Benchmarking requires comparing against contracts for similar complexity and scope within the defense training sector. Longer durations can offer stability but also increase the risk of obsolescence or changing requirements if not managed proactively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3048
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 1100 NEW JERSEY AVE SE, SUITE 310, WASHINGTON, DC, 20003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,214,458
Exercised Options: $35,214,458
Current Obligation: $33,974,298
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4092
IDV Type: IDC
Timeline
Start Date: 2010-05-03
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2019-05-22
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